It's been a good week for Westport Fuel Systems Inc. (TSE:WPRT) shareholders, because the company has just released its latest second-quarter results, and the shares gained 3.0% to CA$7.85. Revenues of US$83m missed analyst estimates by a little bit, but statutory earnings beat expectations by an impressive , coming in at US$0.33 per share. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

Check out our latest analysis for Westport Fuel Systems

After the latest results, the consensus from Westport Fuel Systems' seven analysts is for revenues of US$303.5m in 2024, which would reflect a small 6.7% decline in revenue compared to the last year of performance. Losses are predicted to fall substantially, shrinking 49% to US$1.00. Before this earnings announcement, the analysts had been modelling revenues of US$336.8m and losses of US$2.23 per share in 2024. Although the revenue estimates have fallen somewhat, Westport Fuel Systems'future looks a little different to the past, with a considerable decrease in the loss per share forecasts in particular.

There was no major change to the CA$99.98average price target, suggesting that the adjustments to revenue and earnings are not expected to have a long-term impact on the business.

Of course, another way to look at these forecasts is to place them into context against the industry itself. We would highlight that revenue is expected to reverse, with a forecast 13% annualised decline to the end of 2024. That is a notable change from historical growth of 3.9% over the last five years. Compare this with our data, which suggests that other companies in the same industry are, in aggregate, expected to see their revenue grow 8.8% per year. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - Westport Fuel Systems is expected to lag the wider industry.

The Bottom Line

The most obvious conclusion is that the analysts made no changes to their forecasts for a loss next year. On the negative side, they also downgraded their revenue estimates, and forecasts imply they will perform worse than the wider industry. With that said, earnings are more important to the long-term value of the business. The consensus price target held steady at CA$99.98, with the latest estimates not enough to have an impact on their price targets.